Bob’s Got It Right!

March 31, 2011

Gas prices have doubled under Obama says gas tracking price website and the price of oil rose to a 30-month high today according to Yahoo! FINANCE as fighters loyal to Moammar Gadhafi pushed back rebels from key areas in eastern Libya.

“At one point it hit $106.83, the highest it’s been since September, 2008. In London, Brent crude rose $2.25 to settle at $117.20 per barrel.”

Libya’s output is only 2% of global supply and most of that goes to European countries. Saudi Arabia is making up the shortfall at the moment, but this is bound to result in disruption across the OPEC countries, which includes Iran -not exactly any Westerners friend.

And where was Obama when this ‘skirmish’ started? In Brazil playing soccer and assuring Brazilian oil company Petrobras that America would be their best customer after making $2Billion of US taxpayer money available to them last August amid our own Gulf drilling moratorium, further assuring that Americans will continue to move further from energy independence.

Personally, I kinda think Bob here, has it right!

Aloha, Mikie

Oh BTW Honey, Did You Get Gas?

February 23, 2011

If not, too bad. 25% of Libyan oil output has been shut down due to ‘difficulties’ in that country-

Gas will cost you an arm & a leg!

resulting in a 30-month high on the price of oil & a 2-day drop in the stock market of 259 points.

According to CNN Money, home prices took a big hit at the end of 2010 even as the rest of the economy gained, falling 4.1% in the last 3 months of the year. Seemingly inexplicably, Washington D.C. housing was up 4.1%. Could it be {wink, wink} that booming federal jobs market in the nation’s capital?

The cost of oil and housing are inversely related. High oil prices push everything else up. Higher heating oil or commuting costs could just be the straw that busts the camel.  As more people lose their jobs it’s bye-bye recovery. Even without this slippery oil thingy in places with funny names, the number of borrowers who owe more on their mortgages than their homes are worth took a huge leap in the fourth quarter of 2010. A full 27 percent of borrowers are now “underwater” on their mortgages, up from 23 percent in the previous quarter, according to a new report from Zillow.

As the revolutions in the Middle-East and North Africa continue and tensions between opposing Muslim sects ratchets up a few notches it could get ugly and will be a major smack-down to our already anemic economy. I think you could call it a perfect storm.

Aloha, Mikie

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